The NZD/NOK currency pair hovered above a 7 1/2-year low of 5.4007 on Monday ahead of the outcome of the RBNZ’s policy meeting on Wednesday.
The Reserve Bank of New Zealand is expected to keep its official cash rate intact at 2.25% at its May 27th meeting.
In April, RBNZ Governor Anna Breman noted that the conflict in the Middle East and the increase in fuel prices could lift headline inflation to 4.2% in the second quarter.
She also observed that higher oil prices were eroding household purchasing power and squeezing business profit margins, contributing to a more cautious “wait and see” approach.
Breman pointed out that previous rate cuts were still providing some degree of stimulus to the New Zealand economy.
The RBNZ Governor had said the official cash rate would likely stay without change for an extended period.
Meanwhile, NOK traders will be paying close attention to Norway’s GDP growth figures for Q1 due out on Thursday.
The NZD/NOK currency pair was last up 0.04% on the day to trade at 5.4221.
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